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* This file describes the do and data files for the paper                                             *;
* "License to Sell: The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico" *;
* For questions, please contact the author (Miriam Bruhn) at mbruhn@worldbank.org                     *;
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* Do files *;
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**creating_dataset.do

This Stata do-file creates the main dataset used in the paper.

**tables_and_figures.do

This Stata do-file generates the statistics and regression results displayed in each table and figure.


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* Data files *;
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**ENE Data

This is the Mexican Labor Market Survey, Encuesta Nacional de Empleo (ENE).
It can be downloaded from the website of the Mexican Statistical Institute, INEGI.
You first need to register at the following website to be able to access the data.
http://www.inegi.org.mx/lib/usuarios/default.aspx?s=est&sistema=ene&c=
Registration is free.
After registering, go to the link above again, sign in, and you will get to a page that
let's you select and download each quarter of data.
Download all quarters from 2000-II to 2004-IV
The questionnaire and documentation can be downloaded after selecting a quarter from the drop-own menu.
The files are in dbf format, and you will have to convert them to Stata format to run the do-files.
There are two files in each zipped folder: ene and hog. You only need the ene files. 
These include all individual information. The hog files include household information.

The ENE questionnaire (in Spanish) can be downloaded here
http://www.inegi.org.mx/inegi/default.aspx?s=est&c=10682&pred=1

The variable names correspond to the question numbers on the questionnaire, and the coding is also the same
as on the questionnaire.


**sare.dta

Description: This files contains the information on when the reform (SARE) was implemented in each municipality and by how
much they registration procedures were reduced in the municipality as a result of the reform.
Source: I created this file myself, based on information from COFEMER.


**low_risk_cae.dta

Description: This file contains the list of industries that were eligible for SARE.
Source: I created this file myself, based on information from COFEMER. I hand-matched industry names from a list provided by
COFEMER to industry names in the CAE industry classification.


**political_parties.dta

Description: This file contains the party of the municipal president and state governor.
Source: Own calculations, based on election data from Banamex, the Mexican electoral calendar, and legislative dates for taking office.


**census_data.dta

Description: This file contains data from the 1999 Economic Census and 2000 Demographic Census.
Source: INEGI website.


**prices.dta

Description: This file contains the data for the price regressions. The main outcome variable is the consumer price index (CPI).
I split up the CPI into SARE eligible (low-risk) and non-eligible (high-risk) industries in the following way. 
First, I took the two-digit sub-indices and classified them into whether the industry that produces the product or 
provides the service was eligible for the reform or not.
Then, I took a simple average of the sub-indices for eligible and non-eligible products and services.
(Note that this does not take into account the weight that each product or service has in the CPI).
The political party and census control variables are the same as for the ENE data.
Source: The CPI data is available on the Mexican Central Bank (Banxico) website

**prices_quarterly.dta

Description: This is the quarterly average of the main index in the prices.dta file, used for converting ENE income into real terms
Source: Own calculations based on CPI data from Banxico website